Gold Continues Higher Towards $1800 Despite Recent Correction

Gold has been quite volatile and corrective but remains above $1700 area. Gold continues higher towards $1800 area, despite the recent correction. What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis. 

April 30, 2020 | AtoZ Markets – Gold is currently trading around $1715 area and trying to continue higher. The price is residing inside the ranges of $1750 to $1660 area from the past several weeks. After bouncing from $1660 area, the price showed impulsive move but failed to break above $1740. As per the current scenario, XAU has the potential to strike higher in the coming days.

Global demand for Gold increased in the first quarter as the Coronavirus pandemic pushed safe-haven demand for the precious metal, according to the World Gold Council report. They also added on the report, “Total gold investment demand, which includes bars and coins and Gold-Backed exchange-traded fund investments, climbed by 80% year-on-year to a four-year high of 539.6 metric tons in the first quarter.”

The number included an influx of 298 metric tons for Gold-Backed ETFs to record high bearing of 3185 metric tons for the quarter. Besides, the total global first-quarter demand for Gold was at 1083.8 metric tons, which has risen 1% from the same period last year. Moreover, the upcoming month of June contract settled for Gold futures at $1713.40 an ounce on Wednesday. It down by 0.5% for the session, but traded more than 7% over the month to date.

Gold Continues Higher – Can Break Above the Current Month’s High?

XAU is currently residing near $1715 area, and Gold continues higher. The price retested $1700 area several times and tried to break below, but the dynamic level of 20 EMA has carried the price quite well.

Gold Continues Higher Towards $1800 Despite Recent Correction

Image: Gold 4 Hour Chart

According to the 4-hour chart, Gold is currently residing near $1725 area after breaking the Kumo cloud and the dynamic levels. As per the current price action, if the bulls can sustain the bullish momentum and breaks above $1740 area, the Gold may reach at $1780 in the coming days.

Moreover, according to the Ichimoku wave theory, the price created an N wave pattern, which indicates that bulls may push the price higher towards $1780 area. Moreover, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and Tenkan line. The dynamic levels may now act as a strong support to push the price higher.

Read More – Oil Surged Higher as the US Found Several Hundred Million Barrels Store

XAU Bullish Trend May Sustain Further

According to the Daily chart, Gold price bounced from $1700 area and created a daily bullish pin bar. As per the current price action, Gold bullish pressure may sustain higher towards $1780, which is our first target according to the Ichimoku wave theory. So, if the price reaches $1780 area, we may see some downward correction before Gold continues higher towards $1800 in the coming days.

Gold Continues Higher Towards $1800 Despite Recent Correction

Image: Gold Daily Chart

Moreover, the dynamic level of 20 EMA is currently residing below the price. It may carry the price further upsides in the process. Besides, the MACD histogram created a bullish divergence, which indicates bulls are quite strong to sustain further.

To conclude, Gold bulls are still optimistic about recovering higher. After an extended period of volatility, Gold may gain safe-haven reputation again in the days ahead. 

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